Weak regulator, 'players' responsible for volatile share market: Salehuddin

Weaknesses of the regulatory body and market "players" are responsible for the volatile situation lingering in the share market, Finance Adviser Salehuddin Ahmed said today.

"You're buying Z category stocks which do not exist. Meanwhile, you protest when the share prices fall. I do not support this," he said addressing market investors.

The adviser made the remarks while speaking at the unveiling event of the sixth edition of "Banking Almanac," a book of information on banks and financial institutions of the country, at the Cirdap Auditorium in Dhaka.

He said the Bangladesh Bureau of Statistics has been directed to publish data as they are. "There is no deception. The condition of our share market and banking and financial sectors are alike."

Salehuddin further said, "People are bringing out processions demanding the removal of the chairman [of Bangladesh Securities Exchange Commission] because share prices are falling. Then again, you [investors] are buying Z category shares happily, which will turn into waste paper a few days later.

"I don't blame the investors, rather the regulator and market players have many faults. I think this should be publicised."

Mentioning that nothing can be scrutinised without proper data, he said the interim government faces many questions from foreign investors due to the data mishap that took place in the last 15 years.

"Although some unintentional mistakes played a role behind the wrong data on inflation and GDP, the policymakers have also tried to hide information. Proper policies in the financial and social sectors cannot be formulated without the correct data," the adviser further said.

He continued, "The interim government did not take office to show power. We have taken up a responsibility. We are trying to change and reform the data mishap of the last 15 years.

"Donor agencies are raising questions regarding the high rates of things, but we are trying to convince them by saying that we are now presenting the correct figures."

Five problems of economy 

While presiding over the event, Hossain Zillur Rahman, chairman of the Almanac and a former adviser to the caretaker government, identified five problems that are plaguing the economy.

"One of the problems is financial discipline and balance in the overall economy. Another one is the accuracy of information and professionalism. The government has made improvements on these two issues, and the economy has bounced back slightly from a weak position," Zillur said.

Terming discipline in the financial sector as very important, Zillur added that the wheels of the economy must be in motion.

"The processes need to be sped up. Inflation is another big challenge, as its impact is huge on families despite the overall economy being stable. Another challenge is oligarchic market power," Zillur said.

The finance ministry alone cannot turn the wheels of the economy, he said. "Although the government is eager enough, the private sector needs to be made more active. The lack of trust among everyone from the root level to the mid-level businesses in the SME sector should be eradicated. Law and order situation has to be improved."

Finance Secretary Khairuzzaman Mozumder, who was also present at the event, said, "The government is trying to bring back discipline in various sectors. We have asked for the assistance of our development partners to bring back discipline in the financial sector. The government has already made changes to different boards."

Abdul Hai Sarker, chairman of Bangladesh Association of Banks, said "The Banking Almanac will be useful for public and private sectors if it is based on real data. Old and false information does not help anyone."

Deputy Governor of Bangladesh Bank Nurun Nahar also advised presenting the almanac more effectively.